Total factor productivity growth in Singapore’s service industries

This paper examines and analyses the TFPG performance of individual service industries in Singapore. TFPG of services were highly cyclical, indicating the overwhelming vagaries of external demand in this small and open economy. Although the TFPG of most services were dismal during 1976-93, the rates were higher for the post-1985 recession period, compared with those in the pre-1985 recession years. This trend reflects the Government’s concerted efforts to upgrade the workforce and promote higher technology services. Besides, the service industries which did not conform to this trend had in common massive infrastructural investments which were primarily undertaken by government-linked enterprises with a longer-term interest of the economy at large. Thus it seems that the paternal role of government has a vital influence on Singapore’s TFPG performance. The study implies that the role of government could constitute an important factor in the estimation of TFPG, and in comparing TFPG among economies where government roles differ significantly.Central government, Economic growth, Economic indicators, Service industries, Singapore

Exchange rate appreciation and export competitiveness. The case of Singapore

Policy prescriptions have generally assumed that exchange rate depreciation would stimulate exports and curtail imports, while exchange rate appreciation would be detrimental to exports and encourage imports. This prediction has, however, often neglected to consider the existence of the import content of exports, as well as the dynamic effects of productivity improvements. Our paper seeks to show empirically, the significance of these two factors in affecting the competitiveness of Singapore's exports. Specifically, the paper shows that in the presence of high import content, exports are not adversely affected by currency appreciation because the lower import prices due to appreciation reduce the cost of export production. In the case of Singapore, this cushioning effect outweighs that of the effect of productivity gains on export competitiveness. The service exports, however, with a very low import content tend to suffer from currency appreciation.

Analysing Comparative Advantage and Competitiveness: An Application to Australia's Textile and Clothing Industries

Australia's comparative advantage and competitiveness in textile and clothing (TAC) industries are analysed, using Balassa's revealed comparative advantage index and Vollrath's measures of competitiveness. The analysis based on Balassa's indices shows that Australia has a strong comparative disadvantage in textiles and clothing as aggregate commodity groups, but there is comparative advantage in sub–categories of ‘special textile products’, ‘floor coverage, tapestry etc’, and ‘fur clothing’. The analysis based on Vollrath's indices shows that Australia is not competitive in the world market with respect to aggregate commodity groups of textiles and clothing. Grubel–Loyd index of intra–industry trade was calculated for seven categories of textiles and two categories of clothing. The results show a rising trend in intra–industry trade in some of these categories of TAC products, implying that Australia increasingly exports and imports differentiated TAC products. Australian TAC industries may look to further promote exports of their products in the global market through increased product differentiation and improved quality and design